Assume That a Bank Obtains Most of Its Funds from Large

question 2

Multiple Choice

Assume that a bank obtains most of its funds from large CDs with a one-year maturity. Its assets are in the form of loans with rates that adjust every six months. The bank would be ____ affectedif interest rates increase. To partially hedge its position, it could ____ futures contracts.

• A) adversely; purchase
• B) favorably; sell
• C) favorably; purchase
• D) adversely; sell

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Definitions:

Pay Ranges

The spectrum of compensation offered for a particular job or role, typically defined by minimum, midpoint, and maximum salary levels.

Compensation Policy

The guidelines and practices an organization uses to determine how employees are compensated for their work.

Applicant Tracking Systems

Software applications designed to manage recruitment processes, particularly tracking and organizing candidate applications.

Key Job Requirements

Essential qualifications, skills, knowledge, and experience required for an individual to effectively perform the duties of a specific job.